Running scared
The spectre of something called “disintermediation” is stalking the corridors of the stockbroking world, and horrified shrieks have caused the JSE to shelve a promising plan to allow clients direct access to the market.
02 September 2003
A controversy that has had the broking community in a stew for the past two months – over the prospect of direct market access for investors – abated when the JSE Securities Exchange decided to shelve the idea for now.
Put simply, the scheme would allow clients to deal in shares directly via the JSE`s Stock Exchange Trading System (Sets), rather than having to first go through a stockbroker.
Brokers were divided on whether this would be a good move or not. Some even spoke of the threat of “disintermediation”, or completely cutting out brokers and the fees they charge for their services.
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